HOUSTON - Cal-Maine Foods, the dominant egg seller in Texas, has been hit with a price-gouging lawsuit.
The state of Texas filed suit against Cal-Maine (Wharton County Foods) on April 23 in Harris County District Court.
According to the suit, the pandemic increased the sale of eggs because families are eating at home more. In Texas, the increased demand for eggs has resulted in prices jumping 300 percent or more for generic eggs.
“On information and belief, Cal-Maine has not experienced any supply issues or other disruptions that are driving it to charge more for eggs,” the suit states. “It is simply charging more because it can, or, more specifically, because the pandemic caused market demand to jump.
“In summary, Cal-Maine is taking advantage of a disaster … and selling eggs at exorbitant prices after Governor Abbott declared a disaster on March 13.”
Cal-Maine is being accused of Deceptive Trade Practices.
Attorney General Ken Paxton is brining the suit through his Consumer Protection Division and is seeking an injunction against the company.